How To YieldBoost VAC From 4% To 13.1% Using Options
October 04, 2024 at 11:42 AM EDT
Shareholders of Marriott Vacations Worldwide Corp. (VAC) looking to boost their income beyond the stock's 4% annualized dividend yield can sell the July 2025 covered call at the $90 strike and collect the premium based on the $5.40 bid, which annualizes to an additional 9.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 13.1% annualized rate in the scenario where the stock is not called away..